Egypt's Ministry of Industry announced the launch of the first phase of a new financing initiative aimed at supporting priority industrial sectors, as per a Cabinet statement on Monday. The programme will provide EGP30 billion in credit facilities to private sector companies for purchasing machinery, equipment, and production lines. Under the initiative, investors will benefit from a reduced interest rate of 15 per cent for a period of five years from the programme's start date. Additional incentives will be granted, including up to a 2 per cent further reduction in the interest rate for projects that increase local value-added or engage in innovative industries not previously produced in Egypt but with high import volumes. Eligibility for the financing is tied to obtaining a construction permit, completing facility development, and providing documentation such as import letters of credit or domestic purchase invoices. The initiative will prioritise projects in underdeveloped regions and those generating significant employment. The ministry highlighted that the programme focuses on encouraging investment in specific industrial sectors with high potential for local value creation. Among these sectors is the pharmaceutical industry, which includes the production of active pharmaceutical ingredients and specialised medications such as oncology drugs. The engineering industries are also a priority, particularly those involved in manufacturing components for solar energy systems, wind energy equipment, and mobile phones. In the food processing sector, the programme targets the production of powdered milk, dried herbs, and concentrated fruit products. The textiles and ready-made garments sector is another focus, with an emphasis on producing synthetic and blended yarns. Additionally, the chemical industry is being supported, especially in areas like ink manufacturing and the production of plastics such as polyethylene and polypropylene. The mining sector is also included, with a focus on processing mineral inputs used in pharmaceuticals, food production, and various technological applications. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
